A Look at Lower-Income Taxpayers and the Dependent Care Credit

Caring for a child or an aging parent can be costly. Caregivers working outside of the home may be able to offset some of these costs through the federal child and dependent care tax credit (CDCC). In 2010, 6.3 million taxpayers claimed the CDCC, reducing their tax liability by about $3.4 billion. In all likelihood child care is a much larger slice of this pie, particularly given the requirement that the dependent must live with the taxpayer for at least …

A Tax Rule Washington Is Making Easier

No more rushing to buy a spare pair of prescription glasses to use up your flexible spending account (FSA) before the year ends. >> Sign up for the AARP Money newsletter. The Treasury Department is letting employers give their workers a break by allowing them to roll over up to $500 from their special accounts into the next year. The accounts, which each year let you set aside up to $2,500 in before-tax dollars to pay for health care expenses, …

Shutdown Doesn’t Mean You Get a Break on Oct. 15 Tax Return Deadline

If you filed for a federal tax extension last April, you’ll still need to send in your return by Oct. 15, despite the government shutdown. And millions of you had better get busy. According to the IRS, as of the last week of September, many of the 12 million taxpayers who sought extensions had yet to file. (Of course, you needed to pay at least 90 percent of your estimated tax back in April to avoid any penalties.) Check out …

Watch AARP Live March 21st at 10pm Eastern!

The following is a guest post by Dennis Eisnach – AARP South Dakota volunteer president What Makes A Community Livable for a Lifetime?  For most of us, the ability to drive ourselves where we need to go is a given. We take it for granted. It’s easy to forget that for many seniors that’s not always the case.  As an AARP volunteer in my home state of South Dakota I see this problem every day. In some rural areas of …

News To Know: Mercy From The Tax Man

In a response to the continued economic downturn, the IRS may show leniency in dealing with some people who are delinquent in making tax payments.